More favourable housing market conditions are emerging across Canada, but many first-time homebuyers are choosing to wait before entering the market, according to a new survey from Royal LePage.
The report, released Thursday, found that 13 per cent of Canadian adults are actively working toward buying their first home within the next two years. Of those, the majority (82 per cent) plan to purchase in 12 to 24 months, while a smaller portion are aiming to buy within the next year.
Phil Soper
“Interest rates are trending lower and prices have stabilized or even softened in some markets, creating favourable conditions for long-awaited entry into home ownership, especially in costly cities like Toronto and Vancouver. Yet, hesitation remains,” said Phil Soper, president and CEO of Royal LePage, in a news release.
“For some, ongoing economic uncertainty, particularly surrounding trade relations with the United States, is prompting them to hold off until there are signs of stability. Buying a home is the biggest financial decision most people will ever make, and first-time buyers naturally want to do so with as much certainty as possible,” he added.
The survey, conducted by Burson using Leger’s online panel, found that 51 per cent of first-time buyers are researching neighbourhoods where they can afford to live. Nearly half (49 per cent) are browsing online listings, while 19 per cent are viewing homes in person or working with a real estate agent. Respondents could select more than one response, said Royal LePage.
Soper noted that some prospective buyers are taking a more deliberate approach. “Others are choosing to wait in hopes of securing a better deal. With the potential for further rate cuts from the Bank of Canada this year, those in no rush to purchase now are taking a methodical approach – building up their savings and deliberately planning their entry into the market when they feel the timing is best for them.”
In a separate survey of Royal LePage professionals, 36 per cent reported increased activity among first-time buyers in 2025, while 25 per cent observed no change. This comes as national home prices have shown little movement. According to Royal LePage’s most recent market forecast, the aggregate price of a home in Canada rose 0.3 per cent year over year to $826,400 in the second quarter of 2025. On a quarterly basis, prices declined 0.4 per cent.
Financial support and affordability challenges
Many first-time buyers are receiving help from family or friends to afford their first home, although most are not. According to the survey, 41 per cent of respondents said they will receive financial assistance, while 51 per cent said they will not.
Among those expecting help, 29 per cent said it would come in the form of a non-repayable lump sum, 27 per cent will receive a loan from family or friends, 28 per cent will have someone co-sign their mortgage, and 26 per cent will receive help with monthly mortgage payments, explained Royal LePage.
“Despite improving affordability, many first-time buyers continue to rely on family financial support. This transfer of wealth has become increasingly common, as parents look to give their children the same opportunity for stability and long-term financial growth that they themselves experienced through home ownership,” said Soper.
“For some buyers, financial contributions from family can make the decisive difference between becoming a homeowner and remaining a tenant,” he added. “However, many lack access to this kind of support, forcing them to adopt more creative and often difficult approaches to saving.”
Soper said some prospective buyers are delaying life milestones such as marriage or having children to focus on saving, while others are cutting discretionary spending or staying in their family home longer to build savings.
To make a purchase more affordable, 60 per cent of first-time buyers said they are looking in more affordable areas, 40 per cent are seeking smaller homes, and 39 per cent are cutting back on non-essential spending. Additionally, 28 per cent are using investments or retirement savings to help fund their purchase.
The survey found 53 per cent of first-time buyers plan to make a down payment of at least 20 per cent, while 39 per cent will put down less than that and require mortgage insurance. Under Canadian rules, mortgage insurance is mandatory for buyers with less than a 20 per cent down payment.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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